Do Children Need Life Insurance Policies?

It probably seems a little ridiculous to consider getting a life insurance policy for your child, after all they’re not income earners and they don’t have anyone who relies on them financially.

If you look at whether to insure your child based on those two factors alone it makes total sense to skip buying children’s life insurance and spend the money on something else. However, there are a number of other factors to consider that might impact your perspective.

Should I buy children’s life insurance?

Let’s take a look at some of the key reasons that you should consider children’s life insurance:

-You’re insuring their insurability

If you have life insurance you already know that your premiums and eligibility are heavily influenced by your health. In fact, poor health can make you ineligible for an underwritten life insurance plan. However, there is a way to ensure that your child will have access to an affordable life insurance plan when they reach adulthood, whatever their health. Think of children’s life insurance as a form of insurance that guarantees your child’s future access to insurance—it’s insurance for life insurance. What this means is that you’re buying your child an insurance policy now to ensure they have a life insurance policy when they’re older.

For example:

Without a child life insurance policy

John becomes a father when he’s 26 and wants to buy a life insurance policy to protect his family. Unfortunately, John developed type 1 diabetes when he was 15 and is now considered a high-risk applicant. This means it’s much harder for him to secure an affordable life insurance plan that offers the coverage he needs. If his diabetes is poorly controlled or he’s developed side effects he may find it impossible to find an underwritten life insurance plan.

With a child life insurance policy

John’s parents purchase a life insurance policy for him when he’s a child, luckily the policy was secured before he was diagnosed with diabetes. Knowing that his access to life insurance could be difficult in the future John takes over paying the premium when he becomes an adult to keep the plan active. As the plan was purchased when John was young and healthy he doesn’t need to worry about premium cost. When John becomes a father he already has life insurance in place and doesn’t need to worry about his health problems limiting his access to life insurance.

-You’re guaranteeing affordable rates in adulthood

Life insurance premiums are heavily influenced by the age and health of the policyholder when the plan is first secured. If you take out insurance for your child when they are young and healthy this low rate could be guaranteed for the life of the policy. This ensures that your child has coverage in force and access to low cost life insurance when they reach adulthood.

-You’re securing insurance for the unthinkable

Nobody wants to think about the possibility of his or her child dying at a young age but unfortunately the unthinkable can happen. People find it difficult to purchase life insurance for a child for a number of reasons, but one in particular is difficult for people to get past: receiving a financial payment due to the death of their child. Money will never replace your child and although it can feel like that’s what life insurance for a child is trying to do, it isn’t. Children’s life insurance is designed to help ensure you are not burdened with financial stress during this difficult personal time. It relieves financial stress so you are free to grieve with your loved ones. Also, be advised, when investigating juvenile policies the parents must have or at a minimum applied for life insurance on their lives.

Finding affordable life insurance for your child

Whether you want to enroll your child in a life insurance policy to protect their insurability, guarantee long-term low premiums, to cover end of life expenses, or for any other reason, it’s incredibly important to compare multiple quotes. Each life insurance provider calculates premiums slightly differently, this means that to make sure you find the best priced policy you should request quotes from many life insurance companies. Don’t worry, this isn’t as time consuming as it sounds! IntelliQuote offers a life insurance comparison service that lets you compare plan quotes for the best-rated insurers all by filling in one quick form. Answer some simple questions to get started.